The Central Bank of Nigeria (CBN) has rolled out sweeping new regulations affecting Bank Verification Number (BVN) registration, instant payment services, and the management of dormant bank accounts, as part of efforts to strengthen financial security and curb electronic fraud.
The directives were contained in three separate circulars issued on March 12, 2026, and circulated to banks, financial institutions and payment service providers across the country.
New Controls on Instant Transfers
In one of the circulars, the apex bank introduced new operational standards for instant payment services aimed at improving consumer protection.
Under the directive, all financial institutions offering instant transfers must allow customers voluntarily opt out of the service.
The CBN said customers will be able to temporarily deactivate the instant transfer feature on their accounts for a chosen period.
“Once the option is activated, the account holder will not be able to send money electronically through instant transfers to other accounts,” the circular stated.
However, customers can still visit their banks physically to carry out transactions while the restriction is in place.
The regulator further directed that the opt-in and opt-out process must be protected with multi-factor authentication to ensure that only the account owner can activate the request.
According to the circular, customers will automatically be enrolled for instant payment services when opening new accounts, but they will retain the option to modify their preferences.
Banks were also instructed to allow customers adjust their personal transaction limits for instant transfers.
While the existing regulatory caps remain ₦25 million for individuals and ₦250 million for corporate accounts, customers can set lower limits on their accounts if they wish.
The CBN added that any request to change transaction limits must pass through enhanced verification and risk assessment procedures before approval.
To further combat fraud, financial institutions must deploy enterprise-level fraud monitoring systems capable of tracking both incoming and outgoing transactions in real time.
Stronger Digital Banking Security
The apex bank also introduced stricter requirements for online account opening and account reactivation.
According to the circular, all accounts opened online must undergo a “liveliness check,” with details validated instantly against national identity records and BVN databases.
Banks are also required to deploy stronger authentication measures such as biometric verification, soft tokens, hard tokens and other security tools before reactivating accounts online.
In addition, the regulator ordered tighter security controls on mobile banking applications.
Under the new rule, a mobile banking app can now be linked to only one device at a time, meaning customers will no longer be able to operate the same banking app simultaneously on multiple phones.
Where a customer switches to a new device, the application must undergo fresh authentication and reactivation.
The circular also introduced a temporary transaction restriction for newly activated mobile banking apps.
“For the first 24 hours after activation, the maximum transaction limit allowed will not exceed ₦20,000,” the CBN stated.
The new operational standards for instant payment services will take effect from July 1, 2026.
New BVN Rules
In another circular, the CBN amended the regulatory framework governing the BVN system used across the Nigerian banking industry.
One of the key changes requires banks to create a temporary watchlist for BVNs suspected to be linked to fraudulent transactions.
Under the arrangement, a BVN may remain on the watchlist for up to 24 hours while the financial institution contacts the account holder to clarify the suspicious transaction.
The CBN explained that the measure is designed to allow banks respond quickly to potential fraud cases while giving customers an opportunity to explain their transactions.
The regulator also introduced a minimum age requirement of 18 years for BVN enrolment.
In addition, customers will now be allowed to change the phone number linked to their BVN only once.
Access to the BVN database has also been restricted strictly to financial institutions licensed by the CBN, except in exceptional circumstances permitted by law.
The new BVN rules will take effect from May 1, 2026.
New Guidelines for Dormant Accounts
In a third circular, the CBN issued fresh directives on the management of dormant bank accounts, unclaimed balances and other financial assets.
The apex bank said the reforms are intended to improve transparency, help customers recover forgotten funds and ensure compliance with legal requirements.
Under the new framework, banks can now process requests to reactivate dormant accounts through alternative channels, rather than relying solely on physical visits to bank branches.
However, financial institutions must implement strict identity verification and risk management procedures to confirm that the requester is the legitimate account owner.
The CBN also removed the earlier requirement for customers to present an affidavit when reactivating dormant accounts that have not yet been transferred to the Unclaimed Balances Trust Fund (UBTF) Pool Account.
Affidavits will still be required when customers attempt to recover funds already transferred to the UBTF Pool Account.
Publication of Dormant Accounts
The apex bank also directed financial institutions to publicly disclose details of dormant accounts and unclaimed balances.
According to the circular, banks must publish specific information on their websites, including:
Name of the account holder
Type of account
Name of the financial institution
Branch where the account is domiciled
Banks without websites must publish the information through the websites of their industry associations.
In addition, financial institutions must publish the list of dormant accounts annually in at least two national newspapers.
Where the list is extensive, banks may publish a short notice directing customers to their website for the complete details.
However, state and unit microfinance banks are exempted from newspaper publication, though they must display the information at their business premises.
Compliance with Data Protection Laws
Addressing privacy concerns, the CBN clarified that publishing information about dormant accounts does not violate the Nigeria Data Protection Act 2023, since the law permits the processing of personal data where it is required for legal compliance or to protect the interests of the account holder.
The regulator added that its authority to issue the directives is backed by the Banks and Other Financial Institutions Act 2020, which empowers the CBN to establish guidelines on the administration of unclaimed funds in the banking system.
The circular on dormant accounts takes immediate effect, replacing an earlier directive issued on February 17, 2025.
